Big Investment from Imperial in Canada
Imperial stated that by investing about $720 million (USD $560 million) to advance the construction of the largest renewable diesel facility in the nation, it will help Canada further achieve its net zero goals.
According to calculations made in accordance with Canada’s Clean Fuel Regulation, the project at Imperial’s Strathcona refinery near Edmonton is anticipated to produce more than one billion liters of renewable diesel annually, primarily from locally sourced feedstocks, and could reduce greenhouse gas emissions in the country’s transportation sector by about 3 million metric tons annually. In the near future, regulatory approval for the project is anticipated.
“Imperial supports Canada’s vision for a lower-emission future, and we are making strategic investments to reduce greenhouse gas emissions from our own operations and to help customers in vital sectors of the economy reduce their emissions,” said Brad Corson, Imperial chairman, president and chief executive officer.
“The investment at our Strathcona refinery will deliver immediate benefits to the local economy creating jobs and contributing to a lower-emission energy future for our employees, neighbours and communities.”
The Province of British Columbia has been supporting the renewable diesel project through a Part 3 Agreement under the BC low carbon fuel standard since the project’s initial announcement in August 2021.
British Columbia will receive a sizable amount of the renewable diesel produced at Strathcona in support of the province’s initiative to reduce carbon emissions. As part of its plans to reduce emissions, Imperial also intends to use renewable diesel in its operations.
To help Canada meet low emission fuel standards, Imperial’s renewable diesel facility will use low-carbon hydrogen produced with carbon capture and storage technology. For the supply of low-carbon hydrogen, Imperial has a contract with Air Products, and it is also working on agreements with other parties for the supply of biofeedstock.
In order to create premium lower-emission diesel fuel, a proprietary catalyst will be combined with low-carbon hydrogen and biofeedstock, which will lower greenhouse gas emissions in comparison to conventional fuels. Initial construction is starting, as is site preparation.
Production of renewable diesel is anticipated to begin in 2025. 600 direct construction jobs are anticipated to be generated by the project, and hundreds more are anticipated to result from investments made by business partners.
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